Pricing strategy: should you slash prices to attract more customers?

Pricing in the fast-food sector is a real balancing act. Should you lower your prices to attract more customers? The temptation is great, but beware: this strategy has its upsides... and its downsides. Let's take a look at the pros and cons, and see what you can do differently!

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3 advantages of breaking fast-food prices

1. Short-term increase in visitor numbers

Yes, there's no denying that lower prices attract people. Particularly in today's context of declining purchasing power, many consumers are looking to eat without breaking the bank. Offering less expensive menus can therefore boost patronage, especially during off-peak periods.

👉 To find out more: How to set menu prices for your restaurant?

2. Competitive edge

In an ultra-competitive market like fast food, lower prices can help you stand up to the competition. If your competitors lower their prices, you may find yourself obliged to follow suit if you don't want to lose customers in the process. A little help to stay in the race!

3. Potential gain in sales

By attracting more customers, the idea is of course toincrease your sales. And if volume is sufficient, it can compensate for lower margins. Sometimes, it even enables you to negotiate better terms with your suppliers and partners. But beware: this sales strategy is only valid if you have a significant volume of customers. 

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The disadvantages of breaking prices

Rigorous profitability management

Cutting prices is a good idea for attracting customers, but it can undermine your profitability. The impact of low-priced menus is real: less margin, and if sales volume doesn't keep up, it becomes risky. You could quickly find yourself chasing profitability.

Potential margin reduction

A price reduction often means a lower margin. Worse still, your customers may get used to paying less, and become reluctant when you try to go back to your usual prices. 

The impact on your image

Your outlet's image can suffer from a cut-price strategy: low prices are often associated with a drop in quality. Lowering prices can affect customers' perception of the quality of your products. If you slash prices too much, customers may think that quality is in free fall. In an industry like food service, where quality counts as much as price, this is not something to be taken lightly.

Long-term loyalty is difficult

Another consequence of fluctuating prices? Customers accustomed to discounts are likely to give up on you in the long run. As soon as prices go back up, they'll run off to the competitor offering a new promotion. Attracting bargain hunters may give you a temporary boost, but in terms of customer loyalty, it's far from the ideal strategy.

👉 To find out more: 5 tips for attracting more customers to your restaurant

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5 alternatives to price cuts to attract more customers

1. Offer targeted promotions

Rather than slashing prices across your entire menu, why not opt for targeted promotions? A special offer on a product or during a given period can be enough to attract new customers, while avoiding too much impact on your margin and brand perception.

2. Increase average basket size with order terminals

‍Inaddition to the strategies mentioned, adding ordering kiosks to your point of sale can be an excellent lever for increasing your average basket without having to touch your prices. An ordering kiosk can help you increase your margins in two ways:

• Intelligent suggestion of supplements: Thanks to an automatic recommendation system, the kiosk can suggest desserts, drinks or side dishes to your customers.

"My kiosks are my best salespeople: they skilfully offer extras that inflate my average ticket by €3 on average." Damien, BCHEF franchisee

• Present your dishes with enticing photos: Kiosks allow you to display attractive visuals of your dishes, which often encourage customers to snap up additional options or more expensive menus. A well-chosen image can make all the difference!

3. Focus on a better customer experience

The customer experience is a powerful lever. Offer fast service, quality food and a friendly atmosphere. Customers will be willing to pay a little more for a pleasant experience. After all, a good meal also means a good atmosphere! 

👉 To go further: How to improve the customer experience in a restaurant?

4. Encourage customer reviews

Today, customer reviews are crucial. Encourage your customers to leave positive reviews. Not only does this attract new customers, it also justifies slightly higher prices. A solid reputation based on quality and service can make all the difference, even if you're not the cheapest in your sector. 

For example, offer a -5% discount on the next meal in exchange for a review via a QR code placed on the tables.

5. Stand out from the competition 

Instead of entering into a price war, focus on a strategy of differentiation. Drawing inspiration from current trends, use local products, offer organic options or demonstrate your commitment to fighting food waste. Finding your own signature allows you to stand out from the crowd without necessarily lowering your prices.

So, should we really slash prices to attract more customers? It's tempting, but at what price? While lowering prices can give your outlet a temporary boost, beware of the side effects: lower margins, a degraded image and difficulty in building loyalty. Fortunately, there are more sustainable alternatives, such as offering a better customer experience or differentiating yourself from the competition. It's up to you... without breaking the bank!

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